THE SIGNIFICANCE AND LIMITATIONS OF INDIAS NATIONAL RURAL EMPLOYMENT GUARANTEE ACT IN ADDRESSING RURAL POVERTY Smita Gupta The post-1990s are marked by the pursuit of neo-liberal policies:Deflationarymacroeconomicpoliciesandfallingpublic developmentexpenditureaspcofGDonpublic!orks" employmentgeneration"ruralinfrastructure"socialservices" etc#Trade liberali$ation !ith farmers loosing protection against international price fluctuations %tructural&d'ustmentoliciesresultinginhigherinput costsand!ithdra!alofthestatefromcredit"extension services" procurement" price support and infrastructure#&n unparalleled and comprehensive crisis took firm root inrural(ndia"resultinginpeasantsuicides"starvation deaths" impoverishment" and hunger# )*)&+ ,)(%(%Gro!ing unemployment and underemployment-alling purchasing po!erDeclining per capita availability of foodgrains)educed farm incomes and real !age gro!th(ndebtedness and land alienation" esp# for small and marginal farmers#Deceleration in agricultural gro!th" productivity per !orker and rural non-agricultural employment gro!th%lackening pace of poverty reduction and !orsening poverty amongst marginali$ed social groups and ethnic minorities Thedistressresultedinelectoraldefeatforthe .D&Governmentatthe,entre"andthe*& governmentpromisedtoenactthe.ational)ural /mployment Guarantee &ct" !hich has the potential of turning around the agrarian distress# 0o!ever"forces!ithinthegovernmentitself opposedafull-fledgedemploymentguaranteeand producedvariousdilutedandinad!1uateversions of the Draft &ct(nterventionsby+eftpartiesandpressurefrom massorgani$ations"socialmovements"and.G2s resulted in the successful enactment of an improved guarantee# 3roadlyspeaking"threedifferentpositionsaretaken on .)/G%: 1. Left-Keynes!n"itisbothdesirableandfeasible forbroad-basede1uitablegro!thtorevive agricultureandtheruraleconomybythecreation ofproductiveassetsandthemultipliereffectsof demandexpansioninasituationofexcess capacity" unemployment and idle resources##. Ne$-%&e'!%" (t is neither desirable nor feasible on thegroundsofnon-affordability"corruption"and preferenceforhumancapitalandinfrastructure-led gro!th models# (. L&e'!%"tisthe4humanface5ofglobali$ation"a kindof4socialsafetynet5!hichisdesirablebut feasibleonlyunderveryrestrictedconditionsof fiscal discipline# The Employment Guarantee Act is a step towards the right to work, as an aspect of the fundamental right to live with dignityIt is a recognition that the state cannot retreat from rural development and is responsible to ensure food and livelihood security for the massesThe neo-liberal state hadbegun to intervene more and more aggressively against the poor and rural India. The NREGA is a recognition that the state cannot retreat from pro-poor development and is responsible to ensure food and livelihood securityThe National Rural Employment Guarantee Act 2005 is a law whereby any adult who is willing to do unskilled manual work at the minimum wage is entitled to being employed on local public works within 15 days o applying! with a guarantee o 100 days o unskilled manual work per household per year"urrently it co#ershal o rural $ndia! to be e%tended to the rest within & yearsNREGS is a demand driven programme and employment is to be provided to eligible workers on demand, within 15 days.Step 1 egistrationStep ! "eri#cationStep $ Issuing %ob &ardsStep ' Application(nemployment allowances If Employment is not provided within 1) days of receipt of application, the worker shall be entitled to a daily (nemployment allowance*+*1,, ates *+*!,,-or -irst $. days-or the remaining period of the -inancial yearEmployment wage / (nemployment allowance 0ne fourth of the wage rate12ot less than one half of the wage rate E3ual to the wages for 1.. days of work in a #nancial year *+*$d,,4inimum 5ageA person working for + hours would normally earn a wage e3ual to the wage rate*SchI*6,,4inimum wage #7ed by the state Government underthe minimum wage Act,18'69&entre may #7 wages, at not less than Si7ty rupees per day *:*1,,The Act permits productivitylinked wages under piece rate, with due protection4andatory 5orksite -acilities for laborers%afe drinking !ater%hade for children and periods of rest-irst-aid 3ox for emergency treatment and minor in'uriesDepute one !oman !orker to look after five or more children belo! the age of six years of !omen laborers at the !age rate;ermissible works in order of priority*SchI*1,,water conservation9drought proo#ng 9irrigation canals including micro and minor irrigation works9provision of irrigation facility to land owned by households belonging to the S&s and STs or to land of land reforms and Indira Awas ood control and protection works9rural connectivity to provide all?weather access9 andany other work which may be noti#ed by the &entral Government in consultation with the State Government1 0(T&04ES @#eld reportsAeduction in distress out?migrationdue to availability of additional income and workcreation and repair of rural infrastructure like roads and water bodiesetention of children in school and purchase of books for themGreater interest in local area development due to >ow of funds and village meetings&hanging local dynamics in many places with the recognition by workers that they are right holders E7pansion in membership and activities of workersB and peasant organiCations NREGA and Poverty ReductionP$tent!%".)/G&holdsahugepromiseforpovertyreduction !ithasupplementaryaverageannualhouseholdincomeof)s 6000#forthis"!ages"!orkdaysandaggregateexpenditureon the%chemeshouldbehighiftherogrammehastomakeany significantdentonpoverty#,reationofsocialandeconomic infrastructure too !ould go a long !ay in reducing poverty#E)*e'en+e"Thepovertyreducingpotentialisseverely undermined through:non-recognition of eligible persons as right holders7 inability to make claims due to imposition of a host of arbitrary and discretionary eligibility conditions7 non-fulfilment of entitlements guaranteed under the &ct" in particular days of !ork and !ages7restrictions on the nature of permissible !orks7absence of !ork in the most food-deficit rainy season due to focus on manual labour and earth !orks ,*)T&(+8/.T 2- /.T(T+/8/.T% A. Definition of Household2nthebasisofcommonkitchennotnuclearfamily" number of eligible !orkers per household 9:This reduces per capita entitlementsDisenfranchisesfemaleheadedhouseholdsand !ido!ed;separated;estrangedmarrieddaughtersin natal and marital homesB. Exclusion of Eligible Persons/lderly8igrants+ack of documentary evidencenot re1uired by the la!Divorced;!ido!ed;separated!omeninnatal;marital homes as separate nuclear households Pe'+ent!,e R-'!% H$-se.$%/s Iss-e/ 0$& +!'/s0#0010#000#0060#00&ndhra

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ercentage C. Nonpa!ment "f #inimum $ages Borkers are earning no more than =0 to 60 per cent of minimum !age" ranging from )s 16 to )s =0 per day Due to unrealistically high !ork norms under productivity linked piece rates7 (nade1uate identification ofthe component tasks7 .o differentiation for the elderly" !omen and ecology7&dministrative inade1uacies in task specification" soil identification" lift and lead provision" measurement" both in terms of procedures and ade1uacy of staff D. INADEQUATE WORK GENERATION DUE TO RIGIDITIES IN PERMISSIBLE WORKS AND ADMINISTRATIVE INADEQUACIES 1$'2 D!ys Pe' Re,ste'e/ H$-se.$%/0#0010#000#0060#00C0#00&ndhra

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radesh*ttaranchalBest 3engal&ll (ndia%tatesBork Days /# (.&D/D*&T/ B2)A%(T/ -&,(+(T(/%-#.2.-&E8/.T2-*./8+2E8/.T &++2B&.,/ 2) ,28/.%&T(2.All these combine to result inG#*.D/)*T(+(F&T(2.2--*.D%&.D +2B /G/.D(T*)/ Fn!n+!% Pe'f$'3!n+e D-'n, #445-460